You have probably seen the viral videos: hundreds of people lined up outside a warehouse, waiting for the doors to open so they can dig through massive tables of merchandise. But how exactly do these “bin stores” work, and how can they afford to sell brand-name electronics and home goods for just $5 or $10?
Here is the secret behind the rapidly growing bin store industry and how their unique pricing models work.
Where Does the Merchandise Come From? When you return an item to Amazon, Target, or Walmart, it rarely goes back on the shelf. The logistical cost of inspecting, repackaging, and shipping a returned item is often higher than the value of the item itself. Instead, these mega-retailers pack thousands of returns and overstock items onto giant wooden pallets and sell them by the truckload to liquidators.
Local bin store owners buy these massive truckloads blindly, meaning they don’t know exactly what is inside until they cut the shrink wrap.
The “Daily Drop” Pricing Model To quickly sell thousands of random items, bin stores use a genius system called “Daily Drop Pricing.” Instead of pricing items individually with barcodes and price tags, they dump everything into massive wooden bins and charge a flat rate that drops every single day.
A typical weekly schedule looks like this:
- Friday (Restock Day): $10 per item
- Saturday: $8 per item
- Sunday: $6 per item
- Monday: $4 per item
- Tuesday: $2 per item
- Wednesday: $1 per item
- Thursday: Closed (To clean out the leftovers and restock the bins)
Why Does This System Work? This model creates a massive sense of urgency for shoppers. If you see a $100 coffee maker in the bin on Saturday when everything is $8, you have a choice to make. You can buy it right then for an incredible deal, or you can risk waiting until Monday to see if it’s still there for $4. (Spoiler alert: the good stuff is almost never there the next day!)
Which Day Should You Shop? The day you choose to visit depends entirely on what you are looking for.
- Go on Restock Day if you are looking for high-ticket items like power tools, tablets, smartwatches, and expensive household appliances.
- Go on the $1 or $2 Days if you are looking for lightweight items, seasonal clothing, charging cables, cosmetics, or books.
By understanding how the daily drop pricing model works, you can time your trips perfectly to maximize your savings. Find a location near you using our directory and experience the treasure hunt for yourself!